Stronger together – why the right banking transformation partner matters

The banking sector is undergoing a transformation unlike any seen previously. Across Europe, more than 80% of banks are now modernizing their card management systems. This is a shift driven by rising customer expectations, regulatory requirements, and the growing risks and costs of maintaining outdated technology. However, our new insight report reveals the path to successful transformation is seldom straightforward. In fact, 70% of banking software transformations fail, not because of technology shortcomings, but due to challenges in preparation, governance, and alignment.

Banks can no longer avoid the need to switch to a digital-first approach. Such large transformation programs can frequently take years, yet the pressure for results is immediate. At Tieto Banktech, clients frequently ask us how fast they can modernize and implement new solutions without jeopardizing the service continuity so critical to their customers.

Such questions are fundamental to any multi-year transformation that seeks to modernize core products and solutions. That is why our new insight report identifies factors crucial to success when embarking on a software transformation journey with an external banking software transformation partner. Based on interviews with senior leaders from Nordic banks serving over 20 million card customers and Tieto Banktech experts with decades of FinTech experience.

Our new banking transformation report identifies four critical pillars for success in software transformation: the 4Ps,including Product, Process, Partnership, and People.

Product: Beyond technical excellence

The discussions we have with banks make it clear that technical excellence is considered a fundamental requirement. Banks expect their software partners to deliver resilient products with 100% uptime as a minimum. But this alone is not enough. The banks we spoke to see flexibility as equally vital: solutions must integrate seamlessly with existing systems and adapt as needs and requirements evolve.

AI further increases expectations for modern banking products. Beyond resilience and flexibility, banks expect solutions that are ready to support AI‑driven capabilities while maintaining high standards for security, explainability, and regulatory compliance.

The most successful banks work closely with us as a transformation partner to co-create the future of their products, ensuring that roadmaps reflect both regulatory requirements and our customer’s priorities.

As one banking leader puts it, “Continuous uptime is central to our brand promise …the ability for us to influence the development roadmap of a product is important, as is the ability to request new functionality within a specific time-frame; effectively, to co-create the future of a product alongside our partner.”

Recognising this, we allocate more than 10% of our annual revenue at Tieto Banktech to R&D. This ensures that our product roadmap stays ahead of evolving regulatory and security requirements while reinforcing our leading role across product domains and delivering future‑ready solutions for our customers.

Mario Blazevic

Managing Director, Tieto Banktech

Processes: Adapting for client needs and good governance

What really matters to banks when selecting a transformation partner is their ability to adapt processes to fit the bank’s culture, governance, and regulatory environment. For systemically significant banks, this means aligning with established and required processes, while also bringing new ideas to the table.

Effective transformation requires strong governance, clear communication, and a focus on quality and robustness at every stage. As a banking transformation partner, we understand the importance of investing time in our knowledge of a client’s business by running workshops to agree objectives and establishing governance models which ensure transparency and accountability from day one.

Partnership: Trust resulting in long-term value

Banking transformation is a long and challenging journey which needs to be built on trust, openness, and shared ambitions. Our new report, “Transforming the card value chain for leading banks”, notes that meaningful partnerships are built on great dialogue, the rapid resolution of issues, and a willingness to challenge each other to do better.

When these elements are in place, trust develops quickly and enables extraordinary results. In one case cited in the report, we re-issued more than 300,000 cards within weeks with minimal errors, thanks to a partnership built on mutual understanding and trust in our ability to deliver.

Partnering with us gives client banks access to services tested in the market by over 130 of their peers worldwide, plus access to a development roadmap that has evolved through more than three decades’ shared experience with our clients. Working in partnership with us helps our clients reduce risk, costs, and time-to-market, while ensuring that market-leading best practices are embedded in all our work.

People: The X-Factor in successful banking transformation

Ultimately, technology is delivered by people. Banks need partners who bring not just technical expertise, but also the ability to communicate, manage change, and resolve issues across multiple business units and geographies. The most effective teams are those that combine deep domain knowledge with strong project management and a commitment to continuous improvement. As a Tieto Banktech expert notes in our report, “the biggest part of these programs is actually people – how can we communicate transparently and create an environment where both parties feel they can be fully open?”

That’s why we continuously invest in our teams – providing opportunities for upskilling and lifelong learning. We offer structured career paths for emerging talent and meaningful leadership tracks for senior experts, enabling them to guide and consult our customers through these complex transformation journeys.

In today’s hyper-competitive environment, the stakes for banks looking to transform their card systems for the digital era could not be higher. Winners will gain market share and revenue, while the less successful risk is being left behind.

At Tieto Banktech, we believe successful transformation is built on strong products, sound processes, trusted partnerships, and skilled people. With this foundation, banks can modernise safely and with confidence - today and as they move into the age of AI.

Our new report provides actionable insights for decision-makers, programme leads, and transformation partners seeking to modernize card infrastructure while maintaining compliance, resilience, and customer trust.

Discover how the right banking transformation partner can accelerate your journey: 

Download our banking transformation report

Read more about banking transformation

Lending transformation 1/2: Future-proofing Savings Banks Group

Lending transformation 2/2: Bad news is good news for Savings Banks Group